BENGALURU: On Tuesday, the benchmark nifty index for India traded in a constrained range as traders refrained from placing large wagers in the face of ongoing selling by foreign investors. However, domestic institutional purchasing provided some support.
The S&P BSE Sensex fell 0.1% to 65,945.47 points, while the Nifty 50 closed essentially unchanged at 19,664.70 points.
The Nifty’s intraday movement of 62 points was its smallest range in three weeks.The Nifty’s intraday movement of 62 points was its smallest range in three weeks.Both the benchmarks have fallen about 2.5% in the past week after the US Federal Reserve signalled last week that it was likely not done rising rates.”Buys from domestic institutions and high net worth individuals are balancing out the selling by foreign investors as a result of the Fed’s decision.are still bullish on the India story,” said Deepak Jasani, head of retail research, HDFC Securities.
“Unless there is an unanticipated incident during the next few months, markets won’t drop much. The upside also appears constrained, and we might not surpass the most recent highs, according to Jasani.After investing more than $15 billion in Indian equities this year, foreign institutional investors (FIIs) have been net sellers so far this month, selling shares worth $1.36 billion as of September 22.According to preliminary market statistics, FIIs sold shares worth 23.33 billion rupees ($280.24 million) on Monday while domestic investors purchased shares for 15.79 billion rupees.Small-cap stocks, which have a stronger domestic focus, rose 0.6%, while mid-cap stocks fell 0.2%.Concerns about demand uncertainties brought on by a higher interest rate environment in the US, a key market, caused IT stocks to continue to decline, by 0.5% for Indian IT companies.